The Chief Clerk proceeded to read the
Journal of the preceding day.There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.

Journal of
the House - 82nd Day - Wednesday, April 18, 2018 - Top of Page 8138

REPORTS
OF STANDING COMMITTEES AND DIVISIONS

Knoblach from
the Committee on Ways and Means to which was referred:

H. F. No. 3195, A bill for
an act relating to health occupations; requiring the Council of Health Boards
to study and make recommendations on increasing access to clinical experiences
through the use of technology; appropriating money.

Reported the same back with the following
amendments:

Page 2, line 18, after the period, insert
"This is a onetime appropriation."

With the recommendation that when so
amended the bill be placed on the General Register.

Reported the same back with the
recommendation that the bill be placed on the General Register.

The
report was adopted.

Knoblach from
the Committee on Ways and Means to which was referred:

H. F. No. 3612, A bill for
an act relating to human services; directing the commissioners of human
services and employment and economic development to review certain data related
to federal SNAP waivers.

Reported the same back with the following
amendments:

Page 1, delete lines 17 and 18 and insert
"the waiver request meets the requirements in Code of Federal
Regulations, title 7, part 273.24, paragraph (f)."

With the recommendation that when so
amended the bill be placed on the General Register.

The
report was adopted.

Hamilton from
the Committee on Agriculture Finance to which was referred:

(a) $25,000 the first year and $25,000 the
second year are to develop and maintain cottage food license exemption outreach
and training materials.

(b) $75,000 the first year and $75,000 the
second year are to coordinate the correctional facility vocational training
program and to assist entities that have explored the feasibility of
establishing a USDA-certified or state "equal to" food processing
facility within 30 miles of the Northeast Regional Corrections Center.

(c) $125,000 the first year and $125,000 the
second year are for additional funding for the noxious weed and invasive plant
program.These are onetime
appropriations.

(d) $250,000 the first year and $250,000 the
second year are for transfer to the pollinator habitat and research account in
the agricultural fund.These are onetime
transfers.

Journal
of the House - 82nd Day - Wednesday, April 18, 2018 - Top of Page 8140

(e)
$393,000 the first year and $397,000 the second year are from the remediation
fund for administrative funding for the voluntary cleanup program.

(f) $200,000 the first year and $200,000 the
second year are for the industrial hemp pilot program under Minnesota Statutes,
section 18K.09.These are onetime
appropriations.

(g) $175,000 the first year and $175,000 the
second year are for compensation for destroyed or crippled livestock under
Minnesota Statutes, section 3.737.This
appropriation may be spent to compensate for livestock that were destroyed or
crippled during fiscal year 2017.If the
amount in the first year is insufficient, the amount in the second year is
available in the first year.The
commissioner may use up to $5,000 of this appropriation each year to reimburse
expenses incurred by university extension educators to provide fair market
values of destroyed or crippled livestock.

(h) $155,000 the first year and $155,000 the
second year are for compensation for crop damage under Minnesota Statutes,
section 3.7371.If the amount in the
first year is insufficient, the amount in the second year is available in the
first year.The commissioner may use up
to $30,000 of the appropriation each year to reimburse expenses incurred by the
commissioner or the commissioner's approved agent to investigate and resolve
claims.

If the commissioner determines that claims
made under Minnesota Statutes, section 3.737 or 3.7371, are unusually high,
amounts appropriated for either program may be transferred to the appropriation
for the other program.

(i) $250,000 the first year and $250,000 the
second year are to expand current capabilities for rapid detection,
identification, containment, control, and management of high priority plant
pests and pathogens.These are onetime
appropriations.

(j) $300,000 the first year and $300,000 the
second year are for transfer to the noxious weed and invasive plant species
assistance account in the agricultural fund to award grants to local units of
government under Minnesota Statutes, section 18.90, with preference given to
local units of government responding to Palmer amaranth or other weeds on the
eradicate list.These are onetime
transfers.

(k)
$120,000 the first year and $120,000 the second year are for wolf-livestock
conflict prevention grants under article 2, section 89.The commissioner must submit a report to the
chairs and ranking minority members of the legislative committees with
jurisdiction over agriculture policy and finance by January 15, 2020, on the
outcomes of the wolf-livestock conflict prevention grants and whether livestock
compensation claims were reduced in the areas that grants were awarded.These are onetime appropriations.

Journal
of the House - 82nd Day - Wednesday, April 18, 2018 - Top of Page 8141

(a) $9,300,000 the first year and $9,300,000 the second year
are for transfer to the agriculture research, education, extension, and
technology transfer account under Minnesota Statutes, section 41A.14,
subdivision 3.Of these amounts:at least $600,000 the first year and $600,000
the second year are for the Minnesota Agricultural
Experiment Station's agriculture rapid response fund under Minnesota Statutes,
section 41A.14, subdivision 1, clause (2); $2,000,000 the first year and
$2,000,000 the second year are for grants to the Minnesota Agriculture
Education Leadership Council to enhance agricultural education with priority
given to Farm Business Management challenge grants; $350,000 the first year and
$350,000 the second year are for potato breeding; and $450,000 the first year
and $450,000 the second year are for the cultivated wild rice breeding project
at the North Central Research and Outreach Center to include a tenure
track/research associate plant breeder.The
commissioner shall transfer the remaining funds in this appropriation each year
to the Board of Regents of the University of Minnesota for purposes of
Minnesota Statutes, section 41A.14.Of
the amount transferred to the Board of Regents, up to $1,000,000 each year is
for research on avian influenza, including prevention measures that can be
taken.

To the extent practicable, funds expended under Minnesota
Statutes, section 41A.14, subdivision 1, clauses (1) and (2), must supplement
and not supplant existing sources and levels of funding.The commissioner may use up to one percent of
this appropriation for costs incurred to administer the program.

(b) $13,256,000 the first year and $13,311,000 the second year
are for the agricultural growth, research, and innovation program in Minnesota
Statutes, section 41A.12.Except as
provided below, the commissioner may allocate the appropriation each year among
the following areas:facilitating the
start-up, modernization, or expansion of livestock operations including
beginning and transitioning livestock operations; developing new markets for
Minnesota farmers by providing more fruits, vegetables, meat, grain, and dairy
for Minnesota school children; assisting value‑added agricultural
businesses to begin or expand, access new markets, or diversify; providing
funding not to exceed $250,000 each year for urban youth agricultural education
or urban agriculture community development; providing funding not to exceed
$250,000 each year for the good food access program under Minnesota Statutes,
section 17.1017; facilitating the start-up, modernization, or expansion of
other beginning and transitioning farms including by providing loans under
Minnesota Statutes, section 41B.056; sustainable agriculture on-farm research
and

Journal of
the House - 82nd Day - Wednesday, April 18, 2018 - Top of Page 8142

demonstration;
development or expansion of food hubs and other alternative community-based
food distribution systems; enhancing renewable energy infrastructure and use;
crop research; Farm Business Management tuition assistance; good agricultural
practices/good handling practices certification assistance; establishing and
supporting farmer-led water management councils; and implementing farmer-led
water quality improvement practices.The
commissioner may use up to 6.5 percent of this appropriation for costs incurred
to administer the program.

Of the amount appropriated for the
agricultural growth, research, and innovation program in Minnesota Statutes,
section 41A.12:

(1) $1,000,000 the first year and $1,000,000
the second year are for distribution in equal amounts to each of the state's
county fairs to preserve and promote Minnesota agriculture; and

(2) $1,500,000 the first year and $1,500,000
the second year are for incentive payments under Minnesota Statutes, sections
41A.16, 41A.17, and 41A.18.Notwithstanding
Minnesota Statutes, section 16A.28, the first year appropriation is available
until June 30, 2019, and the second year appropriation is available until June
30, 2020.If this appropriation exceeds
the total amount for which all producers are eligible in a fiscal year, the balance
of the appropriation is available for the agricultural growth, research, and
innovation program.commissioner must issue incentive payments under
Minnesota Statutes, section 41A.17, to facilities that otherwise satisfy the
criteria and requirements in that section but began producing renewable
chemical from forestry biomass between January 1, 2013, and January 1, 2015.

The commissioner may use funds appropriated
under this subdivision to award up to two value-added agriculture grants per
year of up to $1,000,000 per grant for new or expanding agricultural production
or processing facilities that provide significant economic impact to the region.The commissioner may use funds appropriated
under this subdivision for additional value‑added agriculture grants for
awards between $1,000 and $200,000 per grant.

Appropriations in clauses (1) and (2) are
onetime.Any unencumbered balance does
not cancel at the end of the first year and is available for the second year.Notwithstanding Minnesota Statutes, section
16A.28, appropriations encumbered under contract on or before June 30, 2019,
for agricultural growth, research, and innovation grants are available until
June 30, 2021.

The base budget for the agricultural growth,
research, and innovation program is $14,275,000 for fiscal years 2020 and 2021
and includes funding for incentive payments under Minnesota Statutes, sections
41A.16, 41A.17, 41A.18, and 41A.20.

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The
commissioner must develop additional innovative production incentive programs
to be funded by the agricultural growth, research, and innovation program.

The commissioner must consult with the commissioner of
transportation, the commissioner of administration, and local units of
government to identify parcels of publicly owned land that are suitable for
urban agriculture.

(c) $25,000 the first year and $25,000 the second year are for
grants to the Southern Minnesota Initiative Foundation to promote local foods
through an annual event that raises public awareness of local foods and
connects local food producers and processors with potential buyers.

(a) $474,000 the first year and $474,000 the second year are for payments to county and district agricultural
societies and associations under Minnesota Statutes, section 38.02,
subdivision 1.Aid payments to
county and district agricultural societies and associations shall be disbursed
no later than July 15 of each year.These
payments are the amount of aid from the state for an annual fair held in the
previous calendar year.

(b) $1,000 the first year and $1,000 the second year are for
grants to the Minnesota State Poultry Association.

(c) $18,000 the first year and $18,000 the second year are for
grants to the Minnesota Livestock Breeders Association.

(d) $47,000 the first year and $47,000 the second year are for
the Northern Crops Institute.These appropriations
may be spent to purchase equipment.

(e) $220,000 the first year and $220,000$250,000
the second year are for farm advocate services.

(f) $17,000 the first year and $17,000 the second year are for
grants to the Minnesota Horticultural Society.

(g) $108,000 the first year and $108,000 the second year are
for annual grants to the Minnesota Turf Seed Council for basic and applied
research on:(1) the improved production
of forage and turf seed related to new and improved varieties; and (2) native
plants, including plant breeding, nutrient management, pest management, disease
management, yield, and viability.The
grant recipient may subcontract with a qualified third party for some or

Journal of the House - 82nd Day -
Wednesday, April 18, 2018 - Top of Page 8144

all
of the basic or applied research.Any
unencumbered balance does not cancel at the end of the first year and is
available for the second year.These are
onetime appropriations.

(h) $113,000 the first year and $113,000$330,000 the second year are for transfer to the Board of Trustees of
the Minnesota State Colleges and Universities for statewide mental health
counseling support to farm families and business operators through the
Minnesota State Agricultural Centers of Excellence.South Central College and Central Lakes
College shall serve as the fiscal agentagents.

(i) $550,000 the first year and $550,000 the
second year are for grants to Second Harvest Heartland on behalf of Minnesota's
six Feeding America food banks for the purchase of milk for distribution to
Minnesota's food shelves and other charitable organizations that are eligible
to receive food from the food banks.Milk
purchased under the grants must be acquired from Minnesota milk processors and
based on low-cost bids.The milk must be
allocated to each Feeding America food bank serving Minnesota according to the
formula used in the distribution of United States Department of Agriculture
commodities under The Emergency Food Assistance Program (TEFAP).Second Harvest Heartland must submit
quarterly reports to the commissioner on forms prescribed by the commissioner.The reports must include, but are not limited
to, information on the expenditure of funds, the amount of milk purchased, and
the organizations to which the milk was distributed.Second Harvest Heartland may enter into
contracts or agreements with food banks for shared funding or reimbursement of
the direct purchase of milk.Each food
bank receiving money from this appropriation
may use up to two percent of the grant for administrative expenses.Any unencumbered balance does not cancel at
the end of the first year and is available for the second year.

(j) $1,100,000 the first year and $1,100,000
the second year are for grants to Second Harvest Heartland on behalf of the six
Feeding America food banks that serve Minnesota to compensate agricultural
producers and processors for costs incurred to harvest and package for transfer
surplus fruits, vegetables, and other agricultural commodities that would
otherwise go unharvested, be discarded, or sold in a secondary market.Surplus commodities must be distributed
statewide to food shelves and other charitable organizations that are eligible
to receive food from the food banks.Surplus
food acquired under this appropriation must be from Minnesota producers and
processors.Second Harvest Heartland
must report in the form prescribed by the commissioner.Second Harvest Heartland may use up to 15
percent of each grant for matching administrative and transportation expenses.Any unencumbered balance does not cancel at
the end of the first year and is available for the second year.

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(k)
$150,000 the first year and $150,000 the second year are for grants to the
Center for Rural Policy and Development.

(l) $235,000 the first year and $235,000 the
second year are for grants to the Minnesota Agricultural Education and
Leadership Council for programs of the council under Minnesota Statutes,
chapter 41D.

(m) $600,000 the first year and $600,000 the
second year are for grants to the Board of Regents of the University of
Minnesota to develop, in consultation with the commissioner of agriculture and
the Board of Animal Health, a software tool or application through the
Veterinary Diagnostic Laboratory that empowers veterinarians and producers to
understand the movement of unique pathogen strains in livestock and poultry
production systems, monitor antibiotic resistance, and implement effective
biosecurity measures that promote animal health and limit production losses.These are onetime appropriations.

(n) $150,000 the first year is for the tractor
rollover protection pilot program under Minnesota Statutes, section 17.119.This is a onetime appropriation and is
available until June 30, 2019.

(o) $400,000 the first year is for a grant to
the Board of Trustees of the Minnesota State Colleges and Universities to
expand and renovate the GROW-IT Center at Metropolitan State University.This is a onetime appropriation.

By January 15, 2018, the commissioner shall
submit a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over agricultural policy and finance with a list
of inspections the department conducts at more frequent intervals than federal
law requires, an explanation of why the additional inspections are necessary,
and provide recommendations for eliminating any unnecessary inspections.

Sec. 5.RURAL
FINANCE AUTHORITY.

Subdivision 1.Appropriation.$35,000,000 is appropriated from the
bond proceeds fund to the Rural Finance Authority for the purposes set forth in
the Minnesota Constitution, article XI, section 5, paragraph (h), to purchase
participation interests in or to make direct agricultural loans to farmers
under Minnesota Statutes, chapter 41B.This
appropriation is from the bond proceeds account in the rural finance
administration fund and is for the beginning farmer program under Minnesota
Statutes, section 41B.039; the loan restructuring program under Minnesota
Statutes, section 41B.04; the seller-sponsored program under Minnesota
Statutes, section 41B.042; the agricultural improvement loan program under
Minnesota Statutes, section 41B.043; and the livestock expansion loan program
under Minnesota Statutes, section 41B.045.All debt service on bond proceeds used to finance this appropriation
must be repaid by the Rural Finance Authority under Minnesota Statutes, section
16A.643.Loan participations must be
priced to provide full interest and principal coverage and a reserve for
potential losses.Priority for loans
must be given first to basic beginning farmer loans, second to seller-sponsored
loans, and third to agricultural improvement loans.

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Subd. 2.Bond
sale expenses.$35,000 is appropriated
from the bond proceeds fund to the commissioner of management and budget for
bond sale expenses under Minnesota Statutes, section 16A.641, subdivision 8.

Subd. 3.Bond
sale.To provide the money
appropriated in this section from the bond proceeds fund, the commissioner of
management and budget shall sell and issue bonds of the state in an amount up
to $35,035,000 in the manner, upon the terms, and with the effect prescribed by
Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

Subd. 6.Payment
of inspection fee.(a) The person
who registers and distributes in the state a specialty fertilizer, soil
amendment, or plant amendment under section 18C.411 shall pay the inspection
fee to the commissioner.

(b) The person licensed under section
18C.415 who distributes a fertilizer to a person not required to be so licensed
shall pay the inspection fee to the commissioner, except as exempted under
section 18C.421, subdivision 1, paragraph (b).

(c) The person responsible for payment of
the inspection fees for fertilizers, soil amendments, or plant amendments sold
and used in this state must pay an inspection fee of 39 cents per ton, and
until June 30, 20192029, an additional 40 cents per ton, of
fertilizer, soil amendment, and plant amendment sold or distributed in this
state, with a minimum of $10 on all tonnage reports.Notwithstanding section 18C.131, the
commissioner must deposit all revenue from the additional 40 cents per ton fee
in the agricultural fertilizer research and education account in section 18C.80.Products sold or distributed to manufacturers
or exchanged between them are exempt from the inspection fee imposed by this
subdivision if the products are used exclusively for manufacturing purposes.

(d) A registrant or licensee must retain
invoices showing proof of fertilizer, plant amendment, or soil amendment
distribution amounts and inspection fees paid for a period of three years.

Journal
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Sec. 5.Minnesota Statutes 2016, section 28A.16, is
amended to read:

28A.16
PERSONS SELLING LIQUOR.

(a) The provisions of the Minnesota
consolidated food licensing law, sections 28A.01 to 28A.16 and acts amendatory
thereto, shall not apply to persons licensed to sell 3.2 percent malt liquor
"on-sale" as provided in section 340A.403, or to persons licensed to
sell intoxicating liquors "on-sale" or "off-sale" as
provided in sections 340A.404 to 340A.407, provided that these persons sell
only ice manufactured and packaged by another, or bottled or canned soft drinks
and prepacked candy at retail.

(b) When an exclusive liquor store is
not exempt under paragraph (a), the commissioner must exclude all gross sales of off-sale alcoholic beverages when
determining the applicable license fee under section 28A.08, subdivision 3.For purposes of this paragraph,
"exclusive liquor store" and "alcoholic beverage" have the
meanings given in section 340A.101.

Subdivision 1.Eligibility.(a) A facility eligible for payment under
this section must source from Minnesota at least 80 percent raw
materials from Minnesota.of the
biomass used to produce an advanced biofuel, except that, if a facility is
sited 50 miles or less from the state border, raw materialsbiomass
used to produce an advanced biofuel may be sourced from outside of
Minnesota, but only if at least 80 percent of the biomass is sourced from
within a 100-mile radius of the facility or from within Minnesota.Raw materials must be from agricultural or
forestry sources or from solid waste.The facility must be located in Minnesota, must begin production at a
specific location by June 30, 2025, and must not begin operating above 23,750
MMbtu of quarterly advanced biofuel production before July 1, 2015.Eligible facilities include existing companies
and facilities that are adding advanced biofuel production capacity, or
retrofitting existing capacity, as well as new companies and facilities.Production of conventional corn ethanol and
conventional biodiesel is not eligible.Eligible
advanced biofuel facilities must produce at least 23,7501,500
MMbtu of advanced biofuel quarterly.

(b) No payments shall be made for advanced
biofuel production that occurs after June 30, 2035, for those eligible biofuel
producers under paragraph (a).

(c) An eligible producer of advanced
biofuel shall not transfer the producer's eligibility for payments under this
section to an advanced biofuel facility at a different location.

(d) A producer that ceases production for
any reason is ineligible to receive payments under this section until the
producer resumes production.

(e) Renewable chemical production for
which payment has been received under section 41A.17, and biomass thermal
production for which payment has been received under section 41A.18, are not eligible
for payment under this section.

Subd. 2.Payment
amounts; limits.(a) The
commissioner shall make payments to eligible producers of advanced biofuel.The amount of the payment for each eligible
producer's annual production is $2.1053 per MMbtu for advanced biofuel
production from cellulosic biomass, and $1.053 per MMbtu for advanced biofuel
production from sugar or, starch, oil, or animal fat at a
specific location for ten years after the start of production.

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(b)
Total payments under this section to an eligible biofuel producer in a fiscal
year may not exceed the amount necessary for 2,850,000 MMbtu of biofuel production.Total payments under this section to all
eligible biofuel producers in a fiscal year may not exceed the amount necessary
for 17,100,000 MMbtu of biofuel production.The commissioner shall award payments on a first-come, first-served
basis within the limits of available funding.

(c) For purposes of this section, an
entity that holds a controlling interest in more than one advanced biofuel
facility is considered a single eligible producer.

Subdivision 1.Eligibility.(a) A facility eligible for payment under
this programsection must source from Minnesota at least
80 percent biobased content from Minnesota.of the biomass used to
produce a renewable chemical, except that, if a facility is sited 50 miles
or less from the state border, biobased content mustbiomass used to
produce a renewable chemical may be sourced from outside of Minnesota,
but only if at least 80 percent of the biomass is sourced from within a
100-mile radius of the facility or from within Minnesota.Biobased content must be from agricultural
or forestry sources or from solid waste.The facility must be located in Minnesota, must begin production at a
specific location by June 30, 2025, and must not begin production of 750,000250,000 pounds of chemicals quarterly before January 1, 2015.Eligible facilities include existing
companies and facilities that are adding production capacity, or retrofitting
existing capacity, as well as new companies and facilities.Eligible renewable chemical facilities must
produce at least 750,000250,000 pounds of renewable chemicals
quarterly.Renewable chemicals produced
through processes that are fully commercial before January 1, 2000, are not
eligible.

(b) No payments shall be made for
renewable chemical production that occurs after June 30, 2035, for those
eligible renewable chemical producers under paragraph (a).

(c) An eligible producer of renewable
chemicals shall not transfer the producer's eligibility for payments under this
section to a renewable chemical facility at a different location.

(d) A producer that ceases production for
any reason is ineligible to receive payments under this section until the
producer resumes production.

(e) Advanced biofuel production for which
payment has been received under section 41A.16, and biomass thermal production
for which payment has been received under section 41A.18, are not eligible for
payment under this section.

Subdivision 1.Eligibility.(a) A facility eligible for payment under
this section must source from Minnesota at least 80 percent raw
materials from Minnesota.of the biomass used for biomass thermal production,
except that, if a facility is sited 50 miles or less from the state border,
raw materials shouldbiomass used for biomass thermal production may
be sourced from outside of Minnesota, but only if at least 80 percent of the
biomass is sourced from within a 100-mile radius of the facility, or
from within Minnesota.Raw
materialsBiomass must be from agricultural or forestry sources.The facility must be located in Minnesota,
must have begun production at a specific location by June 30, 2025, and must
not begin before July 1, 2015.Eligible
facilities include existing companies and facilities that are adding production
capacity, or retrofitting existing capacity, as well as new companies and
facilities.Eligible biomass thermal
production facilities must produce at least 250 MMbtu of biomass thermal
quarterly.

(b) No payments shall be made for biomass
thermal production that occurs after June 30, 2035, for those eligible biomass
thermal producers under paragraph (a).

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(c)
An eligible producer of biomass thermal production shall not transfer the
producer's eligibility for payments under this section to a biomass thermal
production facility at a different location.

(d) A producer that ceases production for
any reason is ineligible to receive payments under this section until the
producer resumes production.

(e) Biofuel production for which payment
has been received under section 41A.16, and renewable chemical production for
which payment has been received under section 41A.17, are not eligible for payment
under this section.

Subd. 2.Definitions.(a) The definitions in this subdivision
apply to this section.

(b) "Intermediary" means any
lending institution or other organization of a for-profit or nonprofit nature
that is in good standing with the state of Minnesota that has the appropriate
business structure and trained personnel suitable to providing efficient
disbursement of loan funds and the servicing and collection of loans.

(c) "Specialty crops" means crops
produced in an aquaculture system and agricultural crops, such as annuals,
flowers, perennials, and other horticultural products, that are intensively
cultivated.

Subdivision 1.Establishment.The authority must establish a rural
energy feasibility loan program to provide feasibility study loans to farmers,
local units of government, municipalities, and nonprofit entities to explore
feasibility of renewable energy projects.

Subd. 2.Loan
criteria.(a) The authority
may impose a reasonable, nonrefundable application fee for a rural energy
feasibility loan.The authority may
review the fee annually and make adjustments as necessary.The initial application fee is $50.Application fees received by the authority
must be deposited in the Rural Finance Authority administrative account
established in section 41B.03.

(b) Standards for loan amortization
must be set by the authority and must not exceed five years.

(c) The borrower must demonstrate
ability to repay the loan.

(d) Loans under this program must be
made using money in the revolving loan account established in section 41B.06.

Subd. 3.Loan
participation.The authority
may participate in a rural energy feasibility loan with an eligible lender, as defined
in section 41B.02, subdivision 8.Participation
is limited to 90 percent of the principal amount of the loan or $50,000 per
project, whichever is less.

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Sec. 12.Minnesota Statutes 2016, section 41B.06, is
amended to read:

41B.06
RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.

There is established in the rural finance
administration fund a Rural Finance Authority revolving loan account that is
eligible to receive appropriations and the transfer of loan funds from other
programs.All repayments of financial
assistance granted from this account, including principal and interest, must be
deposited into this account.Interest
earned on money in the account accrues to the account, and the money in the
account is appropriated to the commissioner of agriculture for purposes of the
Rural Finance Authority livestock equipment, methane digester, disaster
recovery, value-added agricultural product, agroforestry, agricultural
microloan, and farm opportunity loan, and rural energy feasibility
programs, including costs incurred by the authority to establish and administer
the programs.

Subdivision 1.Areas
where groundwater pollution is detected.(a) If groundwater pollution is detected, a state agency or
political subdivision that regulates an activity causing or potentially causing
a contribution to the pollution identified shall promote implementation of best
management practices to prevent or minimize the source of pollution to the
extent practicable.

(b) The Pollution Control Agency, or for
agricultural chemicals and practices, the commissioner of agriculture may adopt
water source protection requirements under subdivision 2 that are consistent
with the goal of section 103H.001 and are commensurate with the groundwater
pollution if the implementation of best management practices has proven to be
ineffective.

(c) The water resources protection
requirements must be:

(1) designed to prevent and minimize the
pollution to the extent practicable;

(2) designed to prevent the pollution from
exceeding the health risk limits; and

(3) submitted to the house of
representatives and senate committees with jurisdiction over the environment,
natural resources, and agriculture.

(d) The commissioner of agriculture
shall not adopt water resource protection requirements under subdivision 2 for
nitrogen fertilizer unless the water resource protection requirements are
specifically approved by law."

With the recommendation that when so
amended the bill be placed on the General Register.

The
report was adopted.

Knoblach from
the Committee on Ways and Means to which was referred:

H. F. No. 4157, A bill for
an act relating to claims against the state; providing for settlement of
certain claims; appropriating money.

Reported the same back with the following
amendments:

Journal
of the House - 82nd Day - Wednesday, April 18, 2018 - Top of Page 8152

Page
1, after line 4, insert:

"Section 1.EXONERATION
AWARDS.

The amounts in this section are
appropriated in fiscal year 2019 from the general fund to the commissioner of
management and budget for full payment of awards of damages under the
Imprisonment and Exoneration Remedies Act, Minnesota Statutes, sections 611.362
to 611.368.This appropriation is
available until June 30, 2019, for payment to:

(1) Sammy Gerald Jackson, $20,446.08;

(2) Hollis John Larson, $82,500; and

(3) Ronnie Earl Patterson, $131,636.30.

Sec. 2.DEPARTMENT
OF REVENUE.

$12,305.67 in fiscal year 2019 is
appropriated from the general fund to the commissioner of revenue for full and
final payment of the claim by Randy Dooley of Willmar, Minnesota, for the
amount of taxes paid to Minnesota for transactions occurring in South Dakota.This appropriation is available until June
30, 2019."

Page 1, line 15, delete the first "......."
and insert "Joseph Rosales" and delete the second "......."
and insert "to his right index,
middle, and ring fingers sustained while performing assigned duties at
Minnesota Correctional Facility - Stillwater, $10,209."

Renumber the sections in sequence

With the recommendation that when so
amended the bill be placed on the General Register.

The
report was adopted.

Gunther from the
Committee on Legacy Funding Finance to which was referred:

The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article.The
appropriations are from the outdoor heritage fund for the fiscal year indicated
for each purpose.The figures
"2018" and "2019" used in this article mean that the
appropriations listed under the figure are

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available
for the fiscal year ending June 30, 2018, or June 30, 2019, respectively."The first year" is fiscal year
2018."The second year" is
fiscal year 2019."The
biennium" is fiscal years 2018 and 2019.These are onetime appropriations.

APPROPRIATIONS

Available for the Year

Ending June 30

2018

2019

Sec. 2.OUTDOOR
HERITAGE FUND

Subdivision 1.Total
Appropriation

$-0-

$113,923,000

This appropriation is from the outdoor
heritage fund.The amounts that may be
spent for each purpose are specified in the following subdivisions.

Subd. 2.Prairies

-0-

35,288,000

(a)DNR
Wildlife Management Area and Scientific and Natural Area Acquisition - Phase
X

$2,786,000 the second year is to the
commissioner of natural resources to acquire in fee and restore lands for
wildlife management under Minnesota Statutes, section 86A.05, subdivision 8,
and to acquire lands in fee for scientific and natural areas under Minnesota
Statutes, section 86A.05, subdivision 5.Subject to evaluation criteria in Minnesota Rules, part 6136.0900,
priority must be given to acquiring lands that are eligible for the native
prairie bank under Minnesota Statutes, section 84.96, or lands adjacent to
protected native prairie.A list of
proposed land acquisitions must be provided as part of the required
accomplishment plan.

(b)Accelerating
Wildlife Management Area Acquisition - Phase X

$5,740,000 the second year is to the
commissioner of natural resources for an agreement with Pheasants Forever to
acquire in fee and restore lands for wildlife management under Minnesota
Statutes, section 86A.05, subdivision 8.Subject to evaluation criteria in Minnesota Rules, part 6136.0900,
priority must be given to acquiring lands that are eligible for the native
prairie bank under Minnesota Statutes, section 84.96, or lands adjacent to
protected native prairie.A list of
proposed land acquisitions must be provided as part of the required
accomplishment plan.

(c)Minnesota
Prairie Recovery Project - Phase VIII

$2,001,000 the second year is to the
commissioner of natural resources for an agreement with The Nature Conservancy
to acquire lands in fee and to restore and enhance native prairies,

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grasslands,
wetlands, and savannas.Subject to
evaluation criteria in Minnesota Rules, part 6136.0900, priority must be given
to acquiring lands that are eligible for the native prairie bank under
Minnesota Statutes, section 84.96, or lands adjacent to protected native
prairie.Annual income statements and
balance sheets for income and expenses from land acquired with this
appropriation must be submitted to the Lessard-Sams Outdoor Heritage Council no
later than 180 days after The Nature Conservancy's fiscal year closes.A list of proposed land acquisitions must be
provided as part of the required accomplishment plan, and the acquisitions must
be consistent with the priorities identified in Minnesota Prairie Conservation Plan.

$1,893,000 the second year is to the
commissioner of natural resources for an agreement with The Nature Conservancy,
in cooperation with the United States Fish and Wildlife Service, to acquire
lands in fee or permanent conservation easements and to restore lands in the
Northern Tallgrass Prairie Habitat Preservation Area in western Minnesota for
addition to the Northern Tallgrass Prairie National Wildlife Refuge.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquiring lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan, and the acquisitions must be consistent with the
priorities in Minnesota Prairie
Conservation Plan.

(e)Cannon
River Headwaters Habitat Complex - Phase VIII

$1,345,000 the second year is to the
commissioner of natural resources for an agreement with The Trust for Public
Land, in cooperation with Great River Greening, to acquire lands in fee in the
Cannon River watershed for wildlife management under Minnesota Statutes,
section 86A.05, subdivision 8; to acquire lands in fee for scientific and
natural areas under Minnesota Statutes, section 86A.05, subdivision 5; to
acquire lands in fee for state forests under Minnesota Statutes, section
86A.05, subdivision 7; and to restore lands in the Cannon River watershed.Of this amount, $945,000 is to The Trust for
Public Land and $400,000 is to Great River Greening.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquiring lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions and restorations must be provided
as part of the required accomplishment plan.

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(f)
Accelerated Native Prairie Bank Protection - Phase VII

$1,490,000 the second year is to the
commissioner of natural resources to acquire permanent conservation easements
to protect and restore native prairie according to Minnesota Prairie Conservation Plan.Of this amount, up to $176,000 is for
establishing monitoring and enforcement funds as approved in the accomplishment
plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquiring lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of permanent conservation easements must be provided as part of
the final report.

(g)Reinvest
In Minnesota (RIM) Buffers for Wildlife and Water - Phase VIII

$5,000,000 the second year is to the Board
of Water and Soil Resources to acquire permanent conservation easements and
restore habitat under Minnesota Statutes, section 103F.515, to protect,
restore, and enhance habitat by expanding the riparian buffer program under the
clean water fund for at least equal wildlife benefits from buffers on private
land.Of this amount, up to $745,000 is
for establishing a monitoring and enforcement fund as approved in the accomplishment
plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.A list of permanent conservation easements
must be provided as part of the final report.

$1,162,000 the second year is to the
commissioner of natural resources for an agreement with Pheasants Forever, in
cooperation with the Minnesota Prairie Chicken Society, to acquire lands in fee
and restore and enhance lands in the southern Red River valley for wildlife
management under Minnesota Statutes, section 86A.05, subdivision 8, or to be
designated and managed as waterfowl production areas in Minnesota in
cooperation with the United States Fish and Wildlife Service.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquiring lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan.

(i)Martin
County DNR WMA Acquisition - Phase II

$2,447,000 the second year is to the
commissioner of natural resources for an agreement with Fox Lake Conservation
League Inc., in cooperation with Ducks Unlimited and The Conservation

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Fund,
to acquire lands in fee and restore and enhance strategic prairie grassland,
wetland, and other wildlife habitat in Martin County for wildlife management
under Minnesota Statutes, section 86A.05, subdivision 8.Of this amount, $1,978,000 is to Fox Lake
Conservation League Inc., $400,000 is to Ducks Unlimited, and $69,000 is to The
Conservation Fund.A list of proposed
acquisitions must be provided as part of the required accomplishment plan.

(j)Protect
and Restore Minnesota's Important Bird Areas - Phase II

$829,000 the second year is to the
commissioner of natural resources for agreements to acquire conservation
easements and enhance wildlife habitat in important bird areas identified in Minnesota
Prairie Conservation Plan.Of this amount, $209,000 is to Audubon
Minnesota and $620,000 is to Minnesota Land Trust.Up to $120,000 to Minnesota Land Trust is for
establishing monitoring and enforcement funds as approved in the accomplishment
plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.Subject to evaluation criteria in Minnesota
Rules, part 6136.0900, priority must be given to acquiring lands that are
eligible for the native prairie bank under Minnesota Statutes, section 84.96,
or lands adjacent to protected native prairie.A list of permanent conservation easements and enhancements must be
provided as part of the required accomplishment plan.

(k)Grassland
Conservation Partnership - Phase III

$1,468,000 the second year is to the
commissioner of natural resources for an agreement with The Conservation Fund,
in cooperation with Minnesota Land Trust, to acquire permanent conservation
easements and to restore and enhance high-priority grassland, prairie, and
wetland habitats.Of this amount,
$69,000 is to The Conservation Fund and $1,399,000 is to Minnesota Land Trust.Up to $72,000 to Minnesota Land Trust is for
establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.Subject to evaluation
criteria in Minnesota Rules, part 6136.0900, priority must be given to
acquiring lands that are eligible for the native prairie bank under Minnesota
Statutes, section 84.96, or lands adjacent to protected native prairie.A list of proposed acquisitions must be
provided as part of the required accomplishment plan, and the acquisitions must
be consistent with the priorities in Minnesota
Prairie Conservation Plan.

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(l)
Accelerating the USFWS Habitat Conservation Easement Program

$2,960,000 the second year is to the
commissioner of natural resources for an agreement with Ducks Unlimited, in
cooperation with Pheasants Forever and the United States Fish and Wildlife
Service, to acquire permanent conservation "working land" easements
and to restore wetlands and prairie grasslands.Of this amount, $2,000,000 is to Ducks Unlimited and $960,000 is to
Pheasants Forever.A list of proposed
acquisitions must be provided as part of the required accomplishment plan.

(m)DNR
Grassland Enhancement - Phase X

$4,007,000 the second year is to the
commissioner of natural resources to accelerate restoration and enhancement of
prairies, grasslands, and savannas in wildlife management areas, in scientific
and natural areas, on lands in the native prairie bank, in bluff prairies on
state forest land in southeastern Minnesota, and in waterfowl production areas
and refuge lands of the United States Fish and Wildlife Service.A list of proposed land restorations and
enhancements must be provided as part of the required accomplishment plan.

(n)Enhanced
Public-Land Grasslands - Phase III

$2,160,000 the second year is to the
commissioner of natural resources for an agreement with Pheasants Forever to
enhance and restore grassland and wetland habitat on public lands.A list of proposed land restorations and
enhancements must be provided as part of the required accomplishment plan.

Subd. 3.Forests

-0-

9,131,000

(a)Camp
Ripley Partnership - Phase VII

$1,229,000 the second year is to the Board
of Water and Soil Resources, in cooperation with the Morrison County Soil and
Water Conservation District and The Conservation Fund, to acquire permanent
conservation easements and restore forest wildlife habitat within the
boundaries of the Minnesota National Guard Camp Ripley Sentinel Landscape and
Army Compatible Use Buffer.Of this
amount, $39,000 is to the Morrison County Soil and Water Conservation District,
$207,000 is to The Conservation Fund, and $983,000 is to the Board of Water and
Soil Resources.Up to $45,500 to the
Board of Water and Soil Resources is to establish a monitoring and enforcement
fund as approved in the accomplishment plan and subject to Minnesota Statutes,
section 97A.056, subdivision 17.A list
of permanent conservation easements must be provided as part of the final
report.

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(b)

Southeast Minnesota Protection and
Restoration - Phase VI

$2,142,000 the second year is to the
commissioner of natural resources for agreements to acquire lands in fee for
wildlife management under Minnesota Statutes, section 86A.05, subdivision 8; to
acquire lands in fee for scientific and natural areas under Minnesota Statutes,
section 86A.05, subdivision 5; to acquire lands in fee for state forests under
Minnesota Statutes, section 86A.05, subdivision 7; to acquire permanent
conservation easements; and to restore and enhance prairies, grasslands,
forests, and savannas.Of this amount,
$742,000 is to The Nature Conservancy, $700,000 is to The Trust for Public
Land, and $700,000 is to Minnesota Land Trust.Up to $120,000 to Minnesota Land Trust is to establish a monitoring and
enforcement fund as approved in the accomplishment plan and subject to
Minnesota Statutes, section 97A.056, subdivision 17.Annual income statements and balance sheets
for income and expenses from land acquired with this appropriation must be
submitted to the Lessard-Sams Outdoor Heritage Council no later than 180 days
after The Nature Conservancy's fiscal year closes.A list of proposed land acquisitions must be
provided as part of the required accomplishment plan.

(c)Minnesota
Forests for the Future - Phase VI

$1,473,000 the second year is to the
commissioner of natural resources to acquire lands in fee and to acquire
easements for forest, wetland, and shoreline habitat through working forest
permanent conservation easements under the Minnesota forests for the future
program according to Minnesota Statutes, section 84.66.A conservation easement acquired with money
appropriated under this paragraph must comply with Minnesota Statutes, section
97A.056, subdivision 13.The
accomplishment plan must include an easement monitoring and enforcement plan.Of this amount, up to $25,000 is for
establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of proposed land
acquisitions must be provided as part of the required accomplishment plan.A list of permanent conservation easements
must be provided as part of the final report.

$1,255,000 the second year is to the
commissioner of natural resources to acquire in fee and enhance lands for
wildlife habitat in the Richard J. Dorer Memorial Hardwood State Forest under
Minnesota Statutes, section 86A.05, subdivision 7.A list of proposed land acquisitions must be
provided as part of the required accomplishment plan.

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(e)
Critical Shoreland Protection Program - Phase V

$1,094,000 the second year is to the commissioner of
natural resources for an agreement with Minnesota Land Trust to acquire
permanent conservation easements along rivers and lakes in the northern forest
region.Of this amount, up to $120,000
is for establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of proposed
permanent conservation easements must be provided as part of the required
accomplishment plan.

(f)Minnesota Moose Habitat
Collaborative - Phase III

$1,938,000 the second year is to the commissioner of
natural resources for an agreement with the Minnesota Deer Hunters Association
to restore and enhance public forest lands in the northern forest region for
moose habitat.A list of proposed land
restoration and enhancements must be provided as part of the required
accomplishment plan.

Subd. 4.Wetlands

-0-

28,116,000

(a)Accelerating the Waterfowl
Production Area Acquisition - Phase X

$5,061,000 the second year is to the commissioner of
natural resources for an agreement with Pheasants Forever to acquire lands in
fee and to restore and enhance wetlands and grasslands to be designated and
managed as waterfowl production areas in Minnesota, in cooperation with the
United States Fish and Wildlife Service.A list of proposed land acquisitions must be provided as part of the
required accomplishment plan.

(b)Shallow Lake and Wetland Protection Program
- Phase VII

$4,770,000 the second year is to the commissioner of
natural resources for an agreement with Ducks Unlimited to acquire lands in fee
and to restore and enhance prairie lands, wetlands, and land buffering shallow
lakes for wildlife management under Minnesota Statutes, section 86A.05,
subdivision 8.A list of proposed
acquisitions must be provided as part of the required accomplishment plan.

(c)RIM Wetlands Partnership -
Phase IX

$10,000,000 the second year is to the Board of Water and
Soil Resources to acquire permanent conservation easements and to restore
wetlands and native grassland habitat under Minnesota Statutes, section
103F.515.Of this amount, up to $292,500
is for establishing a monitoring and enforcement fund as approved in the

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accomplishment
plan and subject to Minnesota Statutes, section 97A.056, subdivision 17.A list of permanent conservation easements
must be provided as part of the final report.

(d)Wetland
Habitat Protection Program - Phase III

$1,786,000 the second year is to the
commissioner of natural resources for an agreement with Minnesota Land Trust to
acquire permanent conservation easements and to restore and enhance prairie,
wetland, and other habitat in high-priority wetland habitat complexes in the
prairie and forest/prairie transition regions.Of this amount, up to $240,000 is to establish a monitoring and
enforcement fund as approved in the accomplishment plan and subject to
Minnesota Statutes, section 97A.056, subdivision 17.A list of proposed conservation easement
acquisitions and restorations and enhancements must be provided as part of the
required accomplishment plan.

(e)Accelerated
Shallow Lakes and Wetlands Enhancement - Phase X

$2,759,000 the second year is to the
commissioner of natural resources to enhance and restore shallow lakes and
wetland habitat statewide.A list of
proposed land restorations and enhancements must be provided as part of the
required accomplishment plan.

(f)Living
Shallow Lakes and Wetland Initiative - Phase VII

$3,740,000 the second year is to the
commissioner of natural resources for an agreement with Ducks Unlimited to
restore and enhance shallow lakes and wetlands on public lands and wetlands
under permanent conservation easement for wildlife management.A list of proposed shallow lake enhancements
and wetland restorations must be provided as part of the required
accomplishment plan.

Subd. 5.Habitats

-0-

40,978,000

(a)Metro
Big Rivers - Phase VIII

$2,630,000 the second year is to the
commissioner of natural resources for agreements to acquire lands in fee and
permanent conservation easements and to restore and enhance natural systems
associated with the Mississippi, Minnesota, and St. Croix Rivers in the
metropolitan area.Of this amount,
$500,000 is to Minnesota Valley National Wildlife Refuge Trust Inc., $300,000
is to Friends of the Mississippi River, $700,000 is to Great River Greening,
and $1,130,000 is to Minnesota Land Trust.Up to $120,000 to Minnesota Land Trust is to establish a monitoring and
enforcement fund as approved in the accomplishment plan and subject to

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Minnesota
Statutes, section 97A.056, subdivision 17.A list of proposed land acquisitions and permanent conservation
easements must be provided as part of the required accomplishment plan.

(b)Mississippi Headwaters
Habitat Corridor Partnership - Phase IV

$2,073,000 the second year is to the commissioner of
natural resources for agreements to acquire lands in fee and restore wildlife
habitat in the Mississippi headwaters.Of
this amount, $73,000 is to the Mississippi Headwaters Board and $2,000,000 is
to The Trust for Public Land.$925,000
the second year is to the Board of Water and Soil Resources to acquire lands in
permanent conservation easements and to restore wildlife habitat, of which up
to $65,000 is for establishing a monitoring and enforcement fund as approved in
the accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of proposed
acquisitions must be included as part of the required accomplishment plan.

$2,801,000 the second year is to the commissioner of
natural resources for agreements to acquire lands in fee and permanent
conservation easements to sustain healthy fish habitat on coldwater lakes in
Aitkin, Cass, Crow Wing, and Hubbard Counties.Of this amount, $1,005,000 is to the Leech Lake Area Watershed
Foundation and $1,796,000 is to Minnesota Land Trust.Up to $120,000 to Minnesota Land Trust is for
establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of acquisitions
must be provided as part of the required accomplishment plan.

(d)DNR
Trout Stream Conservation Easements

$642,000 the second year is to the commissioner of natural
resources to acquire land in permanent conservation easements to protect trout
stream aquatic habitat.Up to $52,500 is
for establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of permanent
conservation easements must be provided as part of the required accomplishment
plan.

(e)Metro Wildlife Management
Areas

$1,174,000 the second year is to the commissioner of
natural resources for an agreement with The Conservation Fund to acquire lands
in fee in the metro area planning region for wildlife

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management
under Minnesota Statutes, section 86A.05, subdivision 8.A list of proposed land acquisitions must be
provided as part of the required accomplishment plan.

(f)Dakota
County Habitat Protection/Restoration - Phase VI

$2,288,000 the second year is to the
commissioner of natural resources for an agreement with Dakota County to
acquire permanent conservation easements and lands in fee and to restore and
enhance riparian and other habitats in Dakota County.A list of proposed land acquisitions and
restorations and enhancements must be provided as part of the required
accomplishment plan.

(g)Hennepin
County Habitat Conservation Program

$1,514,000 the second year is to the
commissioner of natural resources for an agreement with Hennepin County, in
cooperation with Minnesota Land Trust, to acquire permanent conservation
easements and to restore and enhance habitats in Hennepin County.Of this amount, $194,000 is to Hennepin
County and $1,320,000 is to Minnesota Land Trust.Up to $192,000 to Minnesota Land Trust is for
establishing a monitoring and enforcement fund as approved in the
accomplishment plan and subject to Minnesota Statutes, section 97A.056,
subdivision 17.A list of proposed
permanent conservation easements and restorations and enhancements must be
provided as part of the required accomplishment plan.

$2,291,000 the second year is to the
commissioner of natural resources for an agreement with Minnesota Trout
Unlimited to acquire permanent conservation stream easements using the payment
method prescribed in Minnesota Statutes, section 84.0272, subdivision 2, and to
restore and enhance habitat for trout and other species in and along coldwater
rivers, lakes, and streams in Minnesota.Up to $20,000 is for establishing a monitoring and enforcement fund as
approved in the accomplishment plan and subject to Minnesota Statutes, section
97A.056, subdivision 17.A list of
proposed land acquisitions and restorations and enhancements must be provided
as part of the required accomplishment plan.

(i)Lower
Mississippi River Habitat Partnership - Phase IV

$1,555,000 the second year is to the
commissioner of natural resources to restore and enhance aquatic and forest
habitats in the lower Mississippi River watershed, upper Pool 9 backwater.A list of proposed restorations and
enhancements must be provided as part of the required accomplishment plan.

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(j)
St. Louis River Restoration Initiative - Phase V

$2,013,000 the second year is to the
commissioner of natural resources to restore aquatic habitats in the St. Louis
River estuary.Of this appropriation, up
to $1,350,000 is for an agreement with Minnesota Land Trust.A list of proposed restorations must be
provided as part of the required accomplishment plan.

(k)Knife
River Habitat Rehabilitation - Phase III

$927,000 the second year is to the commissioner
of natural resources for an agreement with Zeitgeist, in cooperation with the
Lake Superior Steelhead Association, to enhance trout habitat in the Knife
River watershed.A list of proposed
enhancements must be provided as part of the required accomplishment plan.

(l)Shell Rock River Watershed Habitat Restoration Program -
Phase VII

$1,421,000 the second year is to the
commissioner of natural resources for an agreement with the Shell Rock River
Watershed District to acquire lands in fee and to restore and enhance aquatic
habitat in the Shell Rock River watershed.A list of proposed acquisitions, restorations, and enhancements must be
provided as part of the required accomplishment plan.

(m)Lake
George Dam and Rum River Erosion

$539,000 the second year is to the
commissioner of natural resources for an agreement with Anoka County to enhance
aquatic habitat in and adjacent to Lake George in Anoka County and to restore
and enhance aquatic habitat on the Rum River.A list of proposed habitat enhancements and restorations must be
provided as part of the required accomplishment plan.

(n)Buffalo
River Watershed Stream Habitat Program

$1,195,000 the second year is to the
commissioner of natural resources for an agreement with the Buffalo-Red River
Watershed District to restore and enhance aquatic and upland habitat associated
with the south branch of the Buffalo River and Whisky Creek in the Buffalo
River watershed.A list of proposed
restorations and enhancements must be provided as part of the required
accomplishment plan.

(o)Two
Rivers Fish Passage Restoration and Habitat Enhancement

$2,000,000 the second year is to the
commissioner of natural resources for an agreement with the city of Hallock to
restore and enhance fish passage and habitat in the South Branch Two Rivers.A list of proposed restorations must be
provided as part of the required accomplishment plan.

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(p)
Six Mile Creek – Halsted Bay Habitat Restoration

$567,000 the second year
is to the commissioner of natural resources for an agreement with the Minnehaha
Creek Watershed District to restore and enhance fish habitat in the Six Mile
Creek - Halsted Bay subwatershed.A list
of proposed restorations and enhancements must be provided as part of the
required accomplishment plan.

(q)DNR Aquatic Habitat
Restoration and Enhancement

$2,834,000 the second year is to the commissioner of
natural resources to restore and enhance aquatic habitat in degraded streams
and aquatic management areas and to facilitate fish passage.A list of proposed land restorations and
enhancements must be provided as part of the required accomplishment plan.

$11,589,000 the second year is to the commissioner of
natural resources for a program to provide competitive matching grants of up to
$400,000 to local, regional, state, and national organizations for enhancing,
restoring, or protecting forests, wetlands, prairies, or habitat for fish,
game, or wildlife in Minnesota.Of this
amount, up to $2,567,000 is for grants in the seven-county metropolitan area
and cities with a population of 50,000 or greater.Grants must not be made for activities
required to fulfill the duties of owners of lands subject to conservation
easements.Grants must not be made from
the appropriation in this paragraph for projects that have a total project cost
exceeding $575,000.Of the total
appropriation, $536,000 may be spent for personnel costs and other direct and
necessary administrative costs.Grantees
may acquire land or interests in land.Easements
must be permanent.Grants may not be
used to establish easement stewardship accounts.Land acquired in fee must be open to hunting
and fishing during the open season unless otherwise provided by law.The program must require a match of at least
ten percent from nonstate sources for all grants.The match may be cash or in-kind resources.For grant applications of $25,000 or less,
the commissioner must provide a separate, simplified application process.Subject to Minnesota Statutes, the
commissioner of natural resources must, when evaluating projects of equal
value, give priority to organizations that have a history of receiving, or a
charter to receive, private contributions for local conservation or habitat
projects.If acquiring land in fee or a
conservation easement, priority must be given to projects associated with or
within one mile of existing wildlife management areas under Minnesota Statutes,
section 86A.05, subdivision 8; scientific and natural areas under Minnesota
Statutes, sections 84.033 and 86A.05, subdivision 5; or aquatic management
areas under Minnesota Statutes, sections

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86A.05,
subdivision 14, and 97C.02.All
restoration or enhancement projects must be on land permanently protected by a
permanent covenant ensuring perpetual maintenance and protection of restored
and enhanced habitat, by a conservation easement or by public ownership, or in
public waters as defined in Minnesota Statutes, section 103G.005, subdivision
15.Priority must be given to
restoration and enhancement projects on public lands.Minnesota Statutes, section 97A.056,
subdivision 13, applies to grants awarded under this paragraph.This appropriation is available until June
30, 2022.No less than five percent of
the amount of each grant must be held back from reimbursement until the grant
recipient has completed a grant accomplishment report by the deadline and in
the form prescribed by and satisfactory to the Lessard-Sams Outdoor Heritage
Council.The commissioner must provide
notice of the grant program in the summary of game and fish law prepared under
Minnesota Statutes, section 97A.051, subdivision 2.

Subd. 6.Administration

-0-

410,000

(a)Contract Management

$210,000 the second year is to the
commissioner of natural resources for contract management duties assigned in
this section.The commissioner must
provide an accomplishment plan in the form specified by the Lessard-Sams
Outdoor Heritage Council on expending this appropriation.The accomplishment plan must include a copy
of the grant contract template and reimbursement manual.No money may be expended before the
Lessard-Sams Outdoor Heritage Council approves the accomplishment plan.

(b)Technical Evaluation Panel

$150,000 the second year is to the
commissioner of natural resources for a technical evaluation panel to conduct
up to 25 restoration and enhancement evaluations under Minnesota Statutes,
section 97A.056, subdivision 10.

(c)High-Priority
Pretransaction Service Acceleration for Lessard-Sams Outdoor Heritage Council

$50,000 the second year is to the
commissioner of natural resources to provide land-acquisition pretransaction
services including but not limited to appraisals, surveys, or title research
for acquisition proposals being considered by the Lessard-Sams Outdoor Heritage
Council.A list of activities must be
included in the final accomplishment plan.

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Subd. 7.Availability
of Appropriation

Money appropriated in this section may not
be spent on activities unless they are directly related to and necessary for a
specific appropriation and are specified in the accomplishment plan approved by
the Lessard-Sams Outdoor Heritage Council.Money appropriated in this section must not be spent on indirect costs
or other institutional overhead charges that are not directly related to and
necessary for a specific appropriation.Unless
otherwise provided, the amounts in this section are available until June 30,
2021.For acquisition of real property,
the amounts in this section are available until June 30, 2022, if a binding
agreement with a landowner or purchase agreement is entered into by June 30,
2021, and closed no later than June 30, 2022.Funds for restoration or enhancement are available until June 30, 2023,
or five years after acquisition, whichever is later, in order to complete
initial restoration or enhancement work.If a project receives at least 15 percent of its funding from
federal funds, the time of the appropriation may be extended to equal the
availability of federal funding to a maximum of six years if that federal
funding was confirmed and included in the second draft accomplishment plan.Funds appropriated for fee title acquisition
of land may be used to restore, enhance, and provide for public use of the land
acquired with the appropriation.Public-use
facilities must have a minimal impact on habitat in acquired lands.

Subd. 8.Payment
Conditions and Capital Equipment Expenditures

All agreements referred to in this section
must be administered on a reimbursement basis unless otherwise provided in this
section.Notwithstanding Minnesota
Statutes, section 16A.41, expenditures directly related to each appropriation's
purpose made on or after July 1, 2018, or the date of accomplishment plan
approval, whichever is later, are eligible for reimbursement unless otherwise
provided in this section.For the
purposes of administering appropriations and legislatively authorized
agreements paid out of the outdoor heritage fund, an expense must be considered
reimbursable by the administering agency when the recipient presents the agency
with an invoice, or a binding agreement with the landowner, and the recipient
attests that the goods have been received or the landowner agreement is binding.Periodic reimbursement must be made upon
receiving documentation that the items articulated in the accomplishment plan
approved by the Lessard-Sams Outdoor Heritage Council have been achieved,
including partial achievements as evidenced by progress reports approved by the
Lessard-Sams Outdoor Heritage Council.Reasonable
amounts may be advanced to projects to accommodate cash flow needs, support
future management of acquired lands, or match a federal share.The advances must be approved as part of the
accomplishment plan.Capital equipment
expenditures for specific items over $10,000 must be itemized in and approved
as part of the accomplishment plan.

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Subd. 9.Mapping

Each direct recipient of money
appropriated in this section, as well as each recipient of a grant awarded
pursuant to this section, must provide geographic information to the
Lessard-Sams Outdoor Heritage Council for mapping of any lands acquired in fee
with funds appropriated in this section and open to public taking of fish and
game.The commissioner of natural
resources must include the lands acquired in fee with money appropriated in
this section on maps showing public recreational opportunities.Maps must include information on and
acknowledgment of the outdoor heritage fund, including a notation of any
restrictions.

Subd. 3.Council
recommendations.(a) The council
shall make recommendations to the legislature on appropriations of money from
the outdoor heritage fund that are consistent with the Constitution and state
law and that will achieve the outcomes of existing natural resource plans,
including, but not limited to, the Minnesota Statewide Conservation and
Preservation Plan, that directly relate to the restoration, protection, and
enhancement of wetlands, prairies, forests, and habitat for fish, game, and
wildlife, and that prevent forest fragmentation, encourage forest
consolidation, and expand restored native prairie.In making recommendations, the council shall
consider a range of options that would best restore, protect, and enhance
wetlands, prairies, forests, and habitat for fish, game, and wildlife.The council's recommendations shall be
submitted no later than January 15 each year.The council shall present its recommendations to the senate and house of
representatives committees with jurisdiction over the environment and natural
resources budget by February 15 in odd-numbered years, and within the first
four weeks of the legislative session in even-numbered years.The council's budget recommendations to the
legislature shall be separate from the Department of Natural Resource's budget
recommendations.

(b) To encourage and support local
conservation efforts, the council shall establish a conservation partners
program.Local, regional, state, or
national organizations may apply for matching grants for restoration,
protection, and enhancement of wetlands, prairies, forests, and habitat for
fish, game, and wildlife, prevention of forest fragmentation, encouragement of
forest consolidation, and expansion of restored native prairie.

(c) The council may work with the Clean
Water Council to identify projects that are consistent with both the purpose of
the outdoor heritage fund and the purpose of the clean water fund.

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(d)
The council may make recommendations to the Legislative-Citizen Commission on
Minnesota Resources on scientific research that will assist in restoring,
protecting, and enhancing wetlands, prairies, forests, and habitat for fish,
game, and wildlife, preventing forest fragmentation, encouraging forest
consolidation, and expanding restored native prairie.

(e) Recommendations of the council,
including approval of recommendations for the outdoor heritage fund, require an
affirmative vote of at least nine members of the council.

(f) The council may work with the Clean
Water Council, the Legislative-Citizen Commission on Minnesota Resources, the
Board of Water and Soil Resources, soil and water conservation districts, and
experts from Minnesota State Colleges and Universities and the University of
Minnesota in developing the council's recommendations.

(g) The council shall develop and
implement a process that ensures that citizens and potential recipients of
funds are included throughout the process, including the development and
finalization of the council's recommendations.The process must include a fair, equitable, and thorough process for
reviewing requests for funding and a clear and easily understood process for
ranking projects.

(h) The council shall use the regions of
the state based upon the ecological sections and subsections developed by the
Department of Natural Resources and establish objectives for each region and
subregion to achieve the purposes of the fund outlined in the state
constitution.

(i) The council shall develop and submit
to the Legislative Coordinating Commission plans for the first ten years of
funding, and a framework for 25 years of funding, consistent with statutory and
constitutional requirements.The council
may use existing plans from other legislative, state, and federal sources, as
applicable.

(j) By July 1 each year, the council
shall provide counties with a list of project proposals that include potential
fee title land acquisitions in the county that is based on that year's funding
requests received by the council from nongovernmental organizations.

Subd. 13.Project
requirements.(a) As a condition of
accepting money appropriated from the outdoor heritage fund, an agency or
entity receiving money from an appropriation must comply with this subdivision
for any project funded in whole or in part with funds from the appropriation.

(5) where appropriate for conservation or
water protection outcomes, require the grantor to employ practices retaining
water on the eased land as long as practicable;

(6) specify the responsibilities of the
parties for habitat enhancement and restoration and the associated costs of
these activities;

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(7)
be sent to the office of the Lessard-Sams Outdoor Heritage Council;

(8) include a long-term stewardship plan
and identify the sources and amount of funding for monitoring and enforcing the
easement agreement; and

(9) identify the parties responsible for
monitoring and enforcing the easement agreement.

(c) For all restorations, a recipient must
prepare and retain an ecological restoration and management plan that, to the
degree practicable, is consistent with current conservation science and
ecological goals for the restoration site.Consideration should be given to soil, geology, topography, and other
relevant factors that would provide the best chance for long-term success and
durability of the restoration.The plan
must include the proposed timetable for implementing the restoration,
including, but not limited to, site preparation, establishment of diverse plant
species, maintenance, and additional enhancement to establish the restoration;
identify long-term maintenance and management needs of the restoration and how
the maintenance, management, and enhancement will be financed; and use current
conservation science to achieve the best restoration.

(d) For new lands acquired, a recipient
must prepare a restoration and management plan in compliance with paragraph
(c), including identification of sufficient funding for implementation.

(e) To ensure public accountability for
the use of public funds, a recipient must provide to the Lessard-Sams Outdoor
Heritage Council documentation of the process used to select parcels acquired
in fee or as permanent conservation easements and must provide the council with
documentation of all related transaction costs, including, but not limited to,
appraisals, legal fees, recording fees, commissions, other similar costs, and
donations.This information must be
provided for all parties involved in the transaction.The recipient must also report to the
Lessard-Sams Outdoor Heritage Council any difference between the acquisition
amount paid to the seller and the state-certified or state-reviewed appraisal,
if a state-certified or state-reviewed appraisal was conducted.The commissioner of natural resources may
conduct or require additional appraisals of parcels to be acquired in fee title
or as conservation easements.Acquisition
data such as appraisals may remain private during negotiations but must
ultimately be made public according to chapter 13.

(f) Except as otherwise provided in the
appropriation, all restoration and enhancement projects funded with money
appropriated from the outdoor heritage fund must be on land permanently
protected by a conservation easement or public ownership or in public waters as
defined in section 103G.005, subdivision 15.

(g) To the extent an appropriation is used
to acquire an interest in real property, a recipient of an appropriation from
the outdoor heritage fund must provide to the Lessard-Sams Outdoor Heritage
Council and the commissioner of management and budget an analysis of increased
operation and maintenance costs likely to be incurred by public entities as a
result of the acquisition and of how the costs are to be paid.

(h) A recipient of money appropriated from
the outdoor heritage fund must give consideration to and make timely written
contact with Conservation Corps Minnesota for possible use of the corps'
services to contract for restoration and enhancement services.A copy of the written contact must be filed
with the Lessard-Sams Outdoor Heritage Council within 15 days of execution.

(j) At least 30 days before closing on
an acquisition of land in fee title with money in whole or in part from the
outdoor heritage fund, a nongovernmental organization must notify in writing
the county board and town board where the land is located and furnish them a
description of the land to be acquired.

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ARTICLE
2

CLEAN
WATER FUND

Section 1.CLEAN WATER FUND
APPROPRIATIONS.

Subdivision 1.Department
of Agriculture.$500,000 in
fiscal year 2018 is appropriated from the clean water fund to the commissioner
of agriculture for grants to the Board of Regents of the University of Minnesota
to fund the Forever Green Agriculture Initiative and to protect the state's
natural resources while increasing the efficiency, profitability, and
productivity of Minnesota farmers by incorporating perennial and winter-annual
crops into existing agricultural practices.This is a onetime appropriation and is available until June 30, 2022.

Subd. 2.Public
Facilities Authority.$1,250,000
in fiscal year 2018 is appropriated from the clean water fund to the Public
Facilities Authority for the point source implementation grants program under
Minnesota Statutes, section 446A.073.This
is a onetime appropriation and is available until June 30, 2022.

Subd. 3.Pollution
Control Agency.$10,000 in
fiscal year 2019 is appropriated from the clean water fund to the commissioner
of the Pollution Control Agency to support activities of the Clean Water
Council according to Minnesota Statutes, section 114D.30, subdivision 1.This is a onetime appropriation.

Subd. 4.Department
of Natural Resources.$1,000,000
in fiscal year 2018 is appropriated from the clean water fund to the
commissioner of natural resources to acquire permanent conservation easements
in targeted areas to protect the forests and shorelands that supply clean water
to lakes, rivers, and streams under Minnesota Statutes, section 84.66.This is a onetime appropriation and is
available until June 30, 2022.

Subd. 5.Board
of Water and Soil Resources.(a)
$3,671,000 in fiscal year 2018 and $629,000 in fiscal year 2019 are
appropriated from the clean water fund to the Board of Water and Soil Resources
for a pilot program to provide performance-based grants to local government
units.The grants may be used to
implement projects that protect, enhance, and restore surface water quality in
lakes, rivers, and streams; protect groundwater from degradation; and protect
drinking water sources.Projects must be
identified in a comprehensive watershed plan developed under the One Watershed,
One Plan or metropolitan surface water management frameworks or groundwater
plans.Grant recipients must identify a
nonstate match and may use other legacy funds to supplement projects funded
under this paragraph.

(b) $3,500,000 in fiscal year 2018 is
appropriated from the clean water fund to the Board of Water and Soil Resources
for grants to protect and restore drinking water sources.The projects must use practices demonstrated
to be effective, be of long-lasting public benefit, and include a match.Projects must be consistent with wellhead
protection, protection plans for surface water intake, strategies for
groundwater restoration and protection, or local water management plans or
their equivalents or develop protection plans for surface water intakes.A portion of these funds may be used to seek
administrative efficiencies through shared resources by multiple local
government units.

(c) $10,000,000 in fiscal year 2018 is
appropriated from the clean water fund to the Board of Water and Soil Resources
to purchase and restore permanent conservation sites via easements or contracts
to treat and store water on the land for water quality improvement purposes and
related technical assistance.This work
may be done in cooperation with the United States Department of Agriculture
with a first priority use to accomplish a conservation reserve enhancement
program, or equivalent, in the state.Up
to $1,080,000 is for deposit in a monitoring and enforcement account.

(d) $5,000,000 in fiscal year 2018 is
appropriated from the clean water fund to the Board of Water and Soil Resources
for grants to soil and water conservation districts for cost-sharing contracts
with landowners or authorized agents to implement riparian buffers or
alternative practices on public waters or public ditches consistent with
Minnesota Statutes, section 103F.48.Of
this amount, up to $2,500,000 may be targeted outside the 54-county
Conservation Reserve Enhancement Area.

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(e)
$500,000 in fiscal year 2018 is appropriated from the clean water fund to the
Board of Water and Soil Resources to provide support to the University of
Minnesota Water Resources Center and partners to further develop and expand the
use of the existing Irrigation Management Assistance tool and implement an
outreach and education program that supports the tool in consultation with the
University of Minnesota Extension Service.The Water Resources Center must explore supplemental funding
opportunities with the United States Department of Agriculture to further this
activity.The Board of Water and Soil
Resources must approve a spending plan before making money available.

(f) The board may shift grant or
cost-share funds in this section and may adjust the technical and
administrative assistance portion of the funds to leverage federal or other
nonstate funds or to address oversight responsibilities or high-priority needs
identified in local water management plans.

(g) The board shall require grantees to
specify the outcomes that will be achieved by the grants before any grant
awards.

(h) The appropriations in this
subdivision are onetime and available until June 30, 2022.Returned grant funds must be regranted
consistent with the purposes of this subdivision.

Subd. 6.University
of Minnesota.$343,000 in
fiscal year 2018 is appropriated from the clean water fund to the Board of
Regents of the University of Minnesota to provide guidance documents and tools
evaluating the clean water fund's return on investment to measure impacts on
water quality and human well-being as well as assist in future funding
decisions.This is a onetime
appropriation and is available until June 30, 2022.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

(d) "Board" means the Capitol
Area Architectural and Planning Board created under section 15B.03.

(e) "Predesign" has the meaning
given in section 16B.335, subdivision 3, paragraph (a).

Subd. 2.Membership.The State Capitol Preservation Commission
consists of 2224 members, appointed as follows:

(1) the governor;

(2) the lieutenant governor;

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(3)
the attorney general;

(4) the chief justice of the Supreme
Court, or the chief justice's designee, who shall be a member of the Supreme
Court;

(5) the majority leader of the senate or
the majority leader's designee, who shall be a member of the senate;

(6) the minority leader of the senate
or the minority leader's designee, who shall be a member of the senate;

(7) the speaker of the house or the
speaker's designee, who shall be a member of the house of representatives;

(8) the minority leader of the house of
representatives or the minority leader's designee, who shall be a member of the
house of representatives;

(7)(9) two members of the
senate, including one member from the majority party appointed by the majority
leader and one member from the minority party appointed by the minority leader;

(8)(10) two members of the
house of representatives, including one member appointed by the speaker of the house
and one member from the minority party appointed by the minority leader;

(9)(11) the chair and
ranking minority member of the house of representatives committee with
jurisdiction over capital investment and the chair and ranking minority member
of the senate committee with jurisdiction over capital investment;

(10)(12) the commissioner
of administration or the commissioner's designee;

(11)(13) the commissioner
of public safety or the commissioner's designee;

(12)(14) the executive
director of the Minnesota Historical Society or the executive director's
designee;

(13)(15) the executive
secretary of the Capitol Area Architectural and Planning Board; and

(14)(16) four public
members appointed by the governor.

Subd. 3.Terms
and compensation.(a) A member
serving on the commission because the member or the appointing authority for
the member holds an elected or appointed office shall serve on the commission
as long as the member or the appointing authority holds the office.

(b) Public members of the commission shall
serve two-year terms.The public members
may not serve for more than three consecutive terms.

(c) The removal of members and filling of
vacancies on the commission are as provided in section 15.059.Public members may receive compensation
and expenses as provided under section 15.059, subdivision 3.

Subd. 4.Officers
and meetings.(a) The governor is
the chair of the commission.The
lieutenant governor is the vice-chair of the commission and may act as the
chair of the commission in the absence of the governor.The governor may designate a staff member to
attend commission meetings and vote on the governor's behalf in the absence of
the governor.

(b) The commission shall meet at least
annually and at other times at the call of the chair.Meetings of the commission are subject to
chapter 13D.

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Subd. 5.Administrative
support.The commission may
designate an executive secretary and obtain administrative support through a
contract with a state agency or other means.The commissioner of
administration shall provide administrative support to the commission.

(2) shall consult with and advise the commissioner of
administration, the board, and the Minnesota Historical Society regarding their
applicable statutory responsibilities for and in the Capitol building;

(3) may assist in the selection of an architectural firm
to assist in the preparation of the predesign plan for the restoration of the
Capitol building;

(4)(3) shall develop a comprehensive,
multiyear, predesignmaintenance and preservation plan for the restoration
of the Capitol building, review the plan periodically, and, as appropriate,
amend and modify the plan.The predesign
plan shall identify appropriate and required functions of the Capitol
building; identify and address space requirements for legislative, executive,
and judicial branch functions; and identify and address the long-term
maintenance and preservation requirements of the Capitol building.In developing the predesign plan, the
commission shall take into account the comprehensive plan for the Minnesota
State Capitol Area, as amended in 2010, the rules governing zoning and design
for the Capitol Area, citizen access, information technology needs, energy
efficiency, security, educational programs including public and school tours,
and any additional space needs for the efficient operation of state governmentand shall take into account the recommendations of the long-range strategic
plan under section 16B.24;

(5)(4) shall develop and implement a plan to
reopen theensure a welcoming and accessible Minnesota State
Capitol and reintroduce it to the citizens of Minnesotafor all
Minnesotans and visitors;

(6)(5) shall develop and implement a
comprehensive financial plan to fund the ongoing preservation and
restoration of the Capitol building;

(7)(6) shall provide annual reports about
the condition of the Capitol building and its needs, as well as all activities
related to the restorationpreservation of the Capitol building; and

(8)(7) may solicit gifts, grants, or
donations of any kind from any private or public source to carry out the
purposes of this section.For purposes
of this section, the commissioner of administration may expend money
appropriated by the legislature for these purposes in the same manner as
private persons, firms, corporations, and associations make expenditures for
these purposes.All gifts, grants, or
donations received by the commission shall be deposited in a State Capitol
preservation account established in the special revenue fund.Money in the account is appropriated to the
commissioner of administration for the activities of clause (5), the
commission, and implementation of the predesign plan under this section.The gift acceptance procedures under
sections 16A.013 to 16A.016 do not apply to this clause.Appropriations under this clause do not
cancel and are available until expended.; and

(8) shall approve any exhibit of works of art to be
displayed in a space in the Capitol building that is listed in section 15B.36,
subdivision 1, before the exhibit may be displayed for two weeks or longer.

(b) By January 15 of each year, the commission shall report
to the chairs and ranking minority members of the legislative committees with
jurisdiction over the commissionstate government operations, capital
investment, finance, ways and means, and legacy regarding the activities
and efforts of the commission in the preceding calendar

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year
maintenance and preservation needs of the Capitol building, including
recommendations adopted by the commission, the comprehensive financial plan
required under paragraph (a), clause (6), and any proposed draft legislation
necessary to implement the recommendations of the commission.

Sec. 2.[15B.36]
CAPITOL ART EXHIBIT ADVISORY COMMITTEE.

Subdivision 1.Application.This section applies to art exhibits
in the following spaces within the State Capitol:third floor east wing, the egress lobbies
added as part of the Capitol restoration completed in 2017, the tunnels
connecting legislative office buildings to the Capitol, room 104A of the
Capitol, and the entire Capitol basement, excluding the historic Rathskeller,
Governor's Dining Room, and Justices' Dining Room.The house of representatives, senate, and
Chief Justice of the Minnesota Supreme Court may request the advisory committee
to provide recommendations on art in their respective hearing rooms and other
tenant spaces.

Subd. 2.Creation,
duties.(a) The Capitol Art
Exhibit Advisory Committee is established to advise and make recommendations to
the State Capitol Preservation Commission regarding art exhibits to be
displayed in State Capitol spaces listed in subdivision 1.To develop these recommendations, the
committee shall:

(1) receive proposals from a broad
diversity of Minnesota artists, art organizations, and other individuals and
evaluate the extent to which proposals meet the criteria in paragraph (b); and

(2) prepare a list of recommended art
exhibits for consideration by the commission, including information on the
availability of the exhibits, a summary of how the recommended exhibits meet
the criteria in paragraph (b) and reflect Minnesota history not covered by
previous art exhibits, and the estimated costs and logistical needs for
recommended exhibits.

(b) Art exhibits displayed in the State
Capitol should tell Minnesota stories and engage people to:

(1) reflect on Minnesota history;

(2) understand Minnesota government;

(3) recognize the contributions of
Minnesota's diverse peoples;

(4) inspire citizen engagement; and

(5) appreciate the varied landscapes of
Minnesota.

(c) The commissioner of administration
shall provide administrative support and curatorial services to the advisory
committee and shall implement display of the art exhibits approved by the
commission under section 15B.32, subdivision 6, paragraph (a), clause (8).

Subd. 3.Membership.(a) The advisory committee consists of
members of the public appointed as follows:

(1) five appointed by the governor;

(2)
two appointed by the majority leader of the senate and two appointed by the
minority leader of the senate; and

(3) two appointed by the speaker of the
house and two appointed by the minority leader of the house of representatives.

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(b)
To the extent practicable, the appointing authorities shall appoint individuals
with knowledge or experience in art, Minnesota history, or Native American
history, so that the advisory committee reflects the demographic and geographic
diversity of the state.The public
members appointed by the governor must be appointed using the public
appointments process under section 15.0597.

(c) The State Arts Board, the Minnesota
Historical Society, the Capitol Area Architectural and Planning Board, and the
commissioner of administration shall each appoint one individual to serve
ex-officio on the advisory committee as a nonvoting member.

(d) The advisory committee may meet as
frequently as needed to complete its work and shall annually, or when requested
by the commissioner, provide the commissioner with a list of recommended
exhibits of works of art by Minnesota artists for possible display in the State
Capitol.

Subd. 4.Terms;
removal; vacancies; compensation.Except
as otherwise provided in this section, terms, removal, vacancies, and
compensation are as provided in section 15.059.Terms of advisory committee members begin the first Tuesday after the
first Monday in January and are for four years.

Subd. 5.Chair.The committee shall elect a chair from
among its members.The committee may
elect other officers as it deems necessary.

Subd. 6.Open
meetings.Committee meetings
are subject to chapter 13D.

Subd. 7.Conflict
of interest.A member of the
committee may not participate in the discussion of or vote on a decision of the
committee relating to an organization in which the member has either a direct
or indirect financial interest.

Subd. 8.Gifts;
grants; donations.The
committee may accept gifts and grants, which are accepted on behalf of the
state and constitute donations to the state.Funds received under this paragraph are appropriated to the commissioner
of administration for purposes of the committee.

Subd. 2.Expenditures;
accountability.(a) Funding from the
arts and cultural heritage fund may be spent only for arts, arts education, and
arts access, and to preserve Minnesota's history and cultural heritage.A project or program receiving funding from
the arts and cultural heritage fund must include measurable outcomes, and a
plan for measuring and evaluating the results.A project or program must be consistent with current scholarship, or
best practices, when appropriate and must incorporate state-of-the-art
technology when appropriate.

(b) Funding from the arts and cultural
heritage fund may be granted for an entire project or for part of a project so
long as the recipient provides a description and cost for the entire project
and can demonstrate that it has adequate resources to ensure that the entire
project will be completed.

(c) Money from the arts and cultural
heritage fund shall be expended for benefits across all regions and residents
of the state.

(d) A state agency or other recipient of a
direct appropriation from the arts and cultural heritage fund must compile and
submit all information for funded projects or programs, including the proposed
measurable outcomes and all other items required under section 3.303,
subdivision 10, to the Legislative Coordinating Commission as soon as
practicable or by January 15 of the applicable fiscal year, whichever comes
first.The Legislative Coordinating
Commission must post submitted information on the Web site required under
section 3.303, subdivision 10, as soon as it becomes available.

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(e)
Grants funded by the arts and cultural heritage fund must be implemented according
to section 16B.98 and must account for all expenditures of funds.Priority for grant proposals must be given to
proposals involving grants that will be competitively awarded.

(f) Individual recipients of arts and
cultural heritage funds must be residents of Minnesota.All money from the arts and cultural heritage
fund must be for projects located in Minnesota.Recipients of funding from the arts and cultural heritage fund must
complete the project in Minnesota.If a
grant recipient is no longer able to complete the project in Minnesota, the
grant recipient must return any remaining grant funds to the state.

(g) When practicable, a direct recipient
of an appropriation from the arts and cultural heritage fund shall prominently
display on the recipient's Web site home page the legacy logo required under
Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter
361, article 3, section 5, accompanied by the phrase "Click here for more
information." When a person clicks
on the legacy logo image, the Web site must direct the person to a Web page
that includes both the contact information that a person may use to obtain
additional information, as well as a link to the Legislative Coordinating
Commission Web site required under section 3.303, subdivision 10.

(h) Future eligibility for money from the
arts and cultural heritage fund is contingent upon a state agency or other
recipient satisfying all applicable requirements in this section, as well as
any additional requirements contained in applicable session law.If the Office of the Legislative Auditor, in
the course of an audit or investigation, publicly reports that a recipient of
money from the arts and cultural heritage fund has not complied with the laws,
rules, or regulations in this section or other laws applicable to the
recipient, the recipient must be listed in an annual report to the legislative
committees with jurisdiction over the legacy funds.The list must be publicly available.The legislative auditor shall remove a
recipient from the list upon determination that the recipient is in compliance.A recipient on the list is not eligible for
future funding from the arts and cultural heritage fund until the recipient
demonstrates compliance to the legislative auditor.

(i) Any state agency or organization
requesting a direct appropriation from the arts and cultural heritage fund must
inform the house of representatives and senate committees having jurisdiction
over the arts and cultural heritage fund, at the time the request for funding
is made, whether the request is supplanting or is a substitution for any
previous funding that was not from a legacy fund and was used for the same
purpose.

Subd. 6.Prohibited
activities.Funding from the
arts and cultural heritage fund must not be used for projects that promote
domestic terrorism or criminal activities.

Sec. 5.WOMEN'S
SUFFRAGE 100TH ANNIVERSARY COMMEMORATION COMMISSION.

Subdivision 1.Establishment.The Women's Suffrage 100th Anniversary
Commemoration Commission is established to commemorate the ratification of the
19th Amendment to the United States Constitution and to celebrate the role of
Minnesotans and the state in this national and international milestone.

Subd. 2.Duties.The commission must coordinate a
statewide commemoration of the 100th anniversary of the ratification of the
19th Amendment.The commemoration must
include a series of events that provide opportunities for Minnesotans in all
geographic regions of the state to learn the history of the women's suffrage
movement, with a specific focus on the contributions of Minnesotans to the
movement.

Subd. 3.Membership;
appointments; compensation.(a)
The commission consists of the following members:

(1) the lieutenant governor or the
lieutenant governor's designee;

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(2)
the secretary of state or the secretary's designee;

(3) the executive director of the
Minnesota Historical Society or the executive director's designee;

(4) the president of the Minnesota
Humanities Center or the president's designee;

(5) eight members of the public, each
representing a different congressional district, appointed by the governor;

(6) one member appointed by the
president of the senate;

(7) one member appointed by the minority
leader of the senate;

(8) one member appointed by the speaker
of the house; and

(9) one member appointed by the minority
leader of the house of representatives.

(b) The members of the commission must
elect a chair and other appropriate officers at the commission's first meeting.

(c) Appointed members serve at the
pleasure of the appointing authority.Initial
appointments to the commission must be made no later than July 1, 2018, and
expire January 8, 2019.An incumbent
appointed member is eligible for reappointment at the discretion of the
appointing authority.

(d) Members of the commission may be
reimbursed for expenses as provided in Minnesota Statutes, section 15.0575,
subdivision 3, but otherwise receive no compensation.

Subd. 4.Open
meetings.Meetings of the
commission are subject to Minnesota Statutes, chapter 13D, and must be held in
different geographic regions of the state.The first meeting must be convened by the secretary of state no later
than August 1, 2018.

Subd. 5.Administrative
and other support.As
necessary to fulfill its duties, the commission may enter contracts and may
request the assistance of any state agency, department, council, or commission.Within available resources, all agencies,
departments, councils, and commissions must be responsive to these requests.The Minnesota Humanities Center shall provide
office and meeting space and administrative support as requested by the
commission.

Subd. 6.Legislative
report.No later than
December 31, 2018, and annually thereafter until the commission expires, the
commission must submit a report describing its work to the chairs and ranking
minority members of the legislative committees with jurisdiction over state
government operations, state government finance, and the arts and cultural
heritage fund.

Subd. 7.Expiration.The commission expires December 31,
2020.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

(a) Appointing authorities for
membership of the Capitol Art Exhibit Advisory Committee under Minnesota
Statutes, section 15B.36, shall make first appointments to the committee by
September 15, 2018.The commissioner of
administration shall convene the first meeting of the committee by November 1,
2018, and serves as chair until the committee elects a chair from among its
members at its first meeting.

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(b)
The following members are appointed to an initial term that ends January 5,
2021:two members appointed by the
governor; one member each appointed by the majority leader of the senate, the
minority leader of the senate, the speaker of the house, and the minority
leader of the house of representatives.The
remaining members are appointed to terms that end on January 3, 2023.

Sec. 7.DEPARTMENT
OF ADMINISTRATION; APPROPRIATIONS.

Subdivision 1.Appropriations.(a) These amounts are appropriated to
the commissioner of administration for grants to the named organizations for
the purposes specified in this subdivision.The commissioner of administration may use a portion of this
appropriation for costs that are directly related to and necessary to the
administration of grants in this subdivision.

(b) Grant agreements entered into by the
commissioner and recipients of appropriations under this subdivision must
ensure that money appropriated in this subdivision is used to supplement and
not substitute for traditional sources of funding.

(c) All appropriations in this article
are onetime.

Subd. 2.Lake
Superior Center Authority.$300,000
in fiscal year 2019 is appropriated from the arts and cultural heritage fund to
the commissioner of administration for a grant to the Lake Superior Center
Authority to develop, prepare, and construct an exhibit on river systems to
help educate Minnesotans on how to protect, enhance, and restore water quality
in Minnesota rivers.

Subd. 3.Minnesota
China Friendship Garden Society.$150,000
in fiscal year 2019 is appropriated from the arts and cultural heritage fund to
the commissioner of administration for a grant to the Minnesota China
Friendship Garden Society to plan and design portions of the Chinese garden
project in Phalen Park in St. Paul.

Subd. 4.Veterans'
Voices.$50,000 in fiscal
year 2019 is appropriated from the arts and cultural heritage fund to the
commissioner of administration for a grant to the Association of Minnesota
Public Educational Radio Stations for statewide programming to promote the
Veterans' Voices program to educate and engage communities regarding veterans'
contributions, knowledge, skills, and experiences with an emphasis on Korean
War veterans.

Subd. 5.Preston
grain elevator.$150,000 in
fiscal year 2019 is appropriated from the arts and cultural heritage fund to
the commissioner of administration for a grant to the Preston Historical
Society for the Preston grain elevator restoration and recreation project.

Subd. 6.Litchfield
Opera House.$100,000 in
fiscal year 2019 is appropriated from the arts and cultural heritage fund to
the commissioner of administration for a grant to the Greater Litchfield Opera
House Association to repair and update the electrical capabilities and interior
walls in the Litchfield Opera House.

Subd. 7.Grove
City Mill.$10,000 in fiscal
year 2019 is appropriated from the arts and cultural heritage fund to the
commissioner of administration for a grant to the city of Grove City for the
Grove City Mill restoration.

Subd. 8.Capitol
Art Exhibit Advisory Committee.$60,000
is appropriated from the arts and cultural heritage fund to the commissioner of
administration for staffing the Capitol Art Exhibit Advisory Committee as
directed under Minnesota Statutes, section 15B.36.The commissioner may enter into an
interagency agreement with the Minnesota State Arts Board to help perform duties
related to soliciting art and art proposals, art curation, and promotion of
recommended and approved exhibits in the Capitol building.This appropriation is available for use until
December 31, 2019.

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Sec. 8.MINNESOTA
HUMANITIES CENTER; APPROPRIATION.

$1,000,000 in fiscal year 2019 is
appropriated from the arts and cultural heritage fund to the Minnesota
Humanities Center for the purpose of supporting the work of the Women's
Suffrage 100th Anniversary Commemoration Commission.All appropriations in this article are
onetime."

Reported the same back with the
recommendation that the bill be placed on the General Register.

The
report was adopted.

SECOND READING
OF HOUSE BILLS

H. F. Nos. 3195, 3261,
3612, 3873, 4157 and 4193 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The
following House Files were introduced:

Schultz and Olson introduced:

H. F. No. 4422, A bill for an act relating
to state lands; clarifying certain property rights in the city of Duluth.

The bill was read for the first time and
referred to the Committee on Government Operations and Elections Policy.

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Theis
and Thissen introduced:

H. F. No. 4423, A bill for an act relating
to state government; establishing a grant program for skate parks throughout
the state; authorizing the Minnesota Amateur Sports Commission to build skate
parks; appropriating money; authorizing the sale and issuance of state bonds;
proposing coding for new law in Minnesota Statutes, chapter 240A.

The bill was read for the first time and
referred to the Committee on State Government Finance.

Kiel introduced:

H. F. No. 4424, A bill for an act relating
to energy; establishing a grant program for residential biomass heating
systems; appropriating money.

The bill was read for the first time and
referred to the Committee on Job Growth and Energy Affordability Policy and
Finance.

Miller introduced:

H. F. No. 4425, A bill for an act relating
to capital investment; appropriating money for the Rural Finance Authority;
authorizing the sale and issuance of state bonds.

The bill was read for the first time and
referred to the Committee on Capital Investment.

The bill was read for the first time and
referred to the Committee on Commerce and Regulatory Reform.

Hertaus introduced:

H. F. No. 4434, A bill for an act relating
to taxation; property; requiring a fractional homestead to be determined based
on the percentage of ownership specified in the county land records; amending
Minnesota Statutes 2016, sections 273.124, by adding a subdivision; 273.13,
subdivision 35; Minnesota Statutes 2017 Supplement, section 273.1384, subdivision
2.

The bill was read for the first time and
referred to the Committee on Taxes.

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Clark
introduced:

H. F. No. 4435, A bill for an act relating
to workforce development; appropriating money for a grant to Somali American
Women Action Center.

The bill was read for the first time and
referred to the Committee on Job Growth and Energy Affordability Policy and
Finance.

The bill was read for the first time and
referred to the Committee on Transportation Finance.

Johnson, B., introduced:

H. F. No. 4438, A bill for an act relating
to economic development; appropriating money for a grant to the city of
Cambridge.

The bill was read for the first time and
referred to the Committee on Job Growth and Energy Affordability Policy and
Finance.

REPORT
FROM THE COMMITTEE ON RULES

AND
LEGISLATIVE ADMINISTRATION

Peppin from the Committee on Rules and
Legislative Administration, pursuant to rules 1.21 and 3.33, designated the
following bills to be placed on the Calendar for the Day for Thursday, April
19, 2018 and established a prefiling requirement for amendments offered to the
following bills:

H. F. Nos. 3551, 3249, 2768
and 2835.

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the House - 82nd Day - Wednesday, April 18, 2018 - Top of Page 8183

MOTIONS
AND RESOLUTIONS

Thissen moved that the name of Moran be
added as chief author on H. F. No. 142.The motion prevailed.

Fenton moved that the name of Jessup be
added as an author on H. F. No. 501.The motion prevailed.

Thissen moved that the name of Moran be
shown as chief author on H. F. No. 1813.The motion prevailed.

Thissen moved that the name of Moran be
shown as chief author on H. F. No. 2580.The motion prevailed.

Allen moved that the name of Omar be added
as an author on H. F. No. 2705.The motion prevailed.

Jessup moved that the name of Daniels be
added as an author on H. F. No. 2768.The motion prevailed.

Knoblach moved that the name of Jessup be
added as an author on H. F. No. 2812.The motion prevailed.

Backer moved that the name of Haley be
added as an author on H. F. No. 2888.The motion prevailed.

Thissen moved that the name of Moran be
added as chief author on H. F. No. 3073.The motion prevailed.

Schomacker moved that the name of Jurgens
be added as an author on H. F. No. 3191.The motion prevailed.

Hoppe moved that the name of Poppe be
added as an author on H. F. No. 3226.The motion prevailed.

Zerwas moved that the name of Flanagan be
added as an author on H. F. No. 3357.The motion prevailed.

Davids moved that the name of Rosenthal be
added as an author on H. F. No. 3464.The motion prevailed.

Kresha moved that the name of Poston be
added as an author on H. F. No. 3509.The motion prevailed.

Peterson moved that the name of Moran be
added as an author on H. F. No. 3587.The motion prevailed.

Franke moved that the name of Pugh be
added as an author on H. F. No. 3661.The motion prevailed.

Knoblach moved that the name of Maye Quade
be added as an author on H. F. No. 3725.The motion prevailed.

Theis moved that the name of Moran be
added as an author on H. F. No. 3884.The motion prevailed.

Albright moved that the name of Sandstede
be added as an author on H. F. No. 4024.The motion prevailed.

Jurgens moved that the name of Dettmer be
added as an author on H. F. No. 4392.The motion prevailed.

Garofalo moved that the name of Dettmer be
added as an author on H. F. No. 4413.The motion prevailed.

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ADJOURNMENT

Peppin moved that when the House adjourns
today it adjourn until 3:30 p.m., Thursday, April 19, 2018.The motion prevailed.

Peppin moved that the House adjourn.The motion prevailed, and the Speaker
declared the House stands adjourned until 3:30 p.m., Thursday, April 19, 2018.